topic Not sure where to categorize the products I use for samples for my direct sales business... in Business & farm

Not sure where to categorize the products I use for samples for my direct sales business...

terry-quinn — Thu, 06 Jun 2019 05:21:19 GMT

Hello.. I am new to direct sales and am not sure what category the products that I purchase for samples goes under when filing my taxes. Is it advertising, supplies, or somewhere else? Same goes with the products I use personally...

Product samples would be considered a cost of promotion,...

Belling — Thu, 06 Jun 2019 05:21:21 GMT

Product samples would be considered a cost of promotion, so- advertising expense.

Any Products you use personally will not be able to be counted as a business expense deduction unless you can viably say that these products were used personally solely for the purpose of promotion.

For example, you sell skincare products and you can attract new/more customers by using the skincare products yourself and then promoting the brand when prospective customers ask about your "glow" and how you're looking so good!

https://www.irs.gov/publications/p334/ch08.html

Re: Product samples would be considered a cost of promotion,...

monicalopez2009 — Tue, 14 Jul 2020 03:41:03 GMT

In my Direct Sales Jewelry business, I purchase samples at a discount - and then hold a sample sale for some of these when the pieces are retired. Which expense category would these jewelry display samples go into?

Thank you!